Australia's Costa Group gets $935 mln bid from PE firm Paine Schwartz Partners (updated)

Costa group

04/07/2023 24:53

(Adds deal details in paragraphs 2-5)
       July 4 (Reuters) - Australia's Costa Group Holdings
 CGC.AX  said on Tuesday it had received a A$1.40 billion
($934.50 million) takeover proposal from U.S. private equity
firm Paine Schwartz Partners LLC (PSP) for shares it doesn't
already own in the horticulture company.
    PSP acquired a 13.78% stake in the grower, packer and
marketer of fresh fruit and vegetables at A$2.60 per share in
Oct. 26 last year. 
    Under the proposal, Costa's shareholders would receive
A$3.50 apiece, reflecting a premium of 34.6% to the price PSP
paid in October.
    Further due diligence and negotiations on a potential scheme
implementation agreement are expected to continue through July,
the company said.
    PSP has indicated that they have received approval from
Australia's Foreign Investment Review Board (FIRB) to acquire
Costa, however such approval may be required to be refreshed
upon finalisation of any co-investors, Costa added.
    PSP did not immediately respond to a Reuters request for
comment.

($1 = 1.4981 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru; Editing by
Shailesh Kuber and Rashmi Aich)
 ((Harish.Sridharan@thomsonreuters.com; Twitter: https://twitter.com/damnit_saladin;))